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In its recent decision in
AirAsia X Berhad v BOC Aviation Limited (Originating Summons WA-24NCC-467-10/2020), the high court held that a scheme of arrangement under Section 366 of the Companies Act 2016 is an insolvency-related event for the purposes of the Convention on International Interests in Mobile Equipment (the Cape Town Convention) and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (Aircraft Protocol).
The Cape Town Convention is an international treaty intended to standardise transactions involving movable property. Malaysia acceded to the convention and the Aircraft Protocol on 2 November 2005 and they both entered into force in Malaysia on 1 March 2006. The International Interests in Mobile Equipment (Aircraft) Act 2006, which was enacted to implement the convention and the Aircraft Protocol, came into force on 19 October 2006.